Insurance question ...

[sshe11]

Hey guys, If i buy a car and my sister drives it too ... can I have her as the primary driver and myself as the secondary (even though i am the owner) so that it costs me less on insurance ...

thanks !

[timmui]

lol you can refer to
http://www.redflagdeals.com/forums/showthread.php?t=271573

[sshe11]

lol yea i read that but it gets Off topic and talks about insurance fraud .. haha ... my only concern is DOES THE OWNER HAVE TO BE PRIMARY DRIVER ON THE CAR ?? If not I can make my sister primary and myself secondary ...

[ratface]

No, the owner does not have to be listed as a driver but does have to be a named insured. For example, a leasing company is the owner of a car, but is not listed as a driver.

You don't decide which driver is primary and secondary, the insurer does that. You just provide them with the relevant facts. You must disclose all licensed drivers in the household when you make the application, and state for each the % use of the car. Most companies will then charge based on the highest rated driver (not necessarily the one who drives the most).

Even if you say that your sister drives 60% of the time and you 40%, I doubt that any company would assign her primary. But ymmv depending on which company, and possibly even the individual at that company.

[sshe11]

ok so the insurance company can charge me whatever they want basically ... its upto them to decide if I am lieing or not ?, so obviously they wont believe me 'coz its lower payments to them ..

[ratface]

No, they don't decide that you are lying. The rule in most underwriting manuals states that the rating is based on the highest rated operator assigned to the vehicle, regardless of which one operates it more. Unless that driver is already assigned as the principal on another vehicle.

But if you can convince them that you have almost no use of that vehicle, they might make an exception. Given the circumstances you described, I highly doubt it. Young male operators have a high claims frequency and they will need that premium to pay for the higher expected claims cost.

[sshe11]

the car we have right now .... my sister is primary and i am secondary ... my dad's is the owner but doesnt drive the car ...

[ratface]

No chance any company will allow her to be principal on 2 vehicles, and all the other drivers in the house secondary. Unless they make a mistake.

You are better off just shopping around. There could be a huge difference from company to company. It might even be worth switching in the middle of your policy.

[ratface]

Good news if you are under 25 is that you are probably paying a separate charge on the policy today as an occasional underage operator (class 06). When you become principal on the new vehicle, you don't have to pay this anymore, and may be eligible for a multi-vehicle discount on both cars (some companies don't allow this discount for under 25). So your premiums might not go up by very much.

If you are over 25, it doesn't matter if you are M or F the rates are the same.

[sshe11]

ok i got u guys on the wrong track .. hehe ... we wont be using our current vehicle anymore ... getting a new car which i'll be the owner and she'll drive it too like she did with our old car :) ...

[FastFokker]

If you are both equally experienced and licensed, then they will want the owner to be primary.. if your sister is higher risk, then they will want her as primary.

Basically they want to do it whatever way they can charge you the most.

Just call some brokers and find out for yourself.